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American International Group, Inc. Message Board

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  • ck_wifeygone ck_wifeygone Aug 29, 2009 7:57 AM Flag

    12.46 eps next yr = $1.6 Billion net profit

    Not seeing the forest from the trees.

    The company has to shell out annual payments on 40 billion bucks at the rate of 8.5%. That alone is 3.5 billion. They are already in arrears on 4.8 billion, meaning they ain't paid anything yet, so that 40 billion debt is now up to 44.8 billion.

    They also have to pay dividends on 30 billion of pfd shares at 10%, that's another 3 billion.

    So just in int & div payments to us, that's 6.5 bill a year.

    The co. has stated they want gov't to convert pfd to common. That would save 3 billion....but
    offer up some nasty dilution. And the gov't ownership interest will soar thru the roof.

    Figure gov't owns 80% now, which is 700 mill shares. They convert 30 bill, plus 4.8 bill in missed int, plus another 1 bill in missed divvies, so that's 36 bill. Say gov't converts 36 bill at 36$ a shares, that's 1 billion common shares. The gov't will now own 1.7 billion shares out of 1.828 billion or 93% of AIG. That leaves 7% to regular folks.

 
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